Buying a house in Portugal, even without being a resident, is an accessible and attractive process for many foreigners. The country offers a dynamic real estate market, with many opportunities for investment or secondary residence. In this article, we detail the main aspects to consider, from the necessary documentation to the associated costs and advantages of this purchase.

Required documentation

In order to buy a property in Portugal as a non-resident, it is essential to gather the following documentation:

• Tax Identification Number: This number is essential for any financial transaction in Portugal. It can be obtained from the Tax and Customs Authority (AT) or the Citizen’s Bureau. If you are not resident in Portugal, you will need to appoint a tax representative in the country.

• Identification document: Valid passport or equivalent identification document.

• Proof of Income: Last tax return and the last three pay slips or proof of other regular income. In the case of employees, a statement from the employer indicating the type of contract and length of service is recommended.

• Proof of Address: A document certifying your current residence in the country of origin, such as a utility bill.

Financing

Portuguese banks are open to granting housing loans to non-resident foreigners, although the conditions may vary:

• Financing percentage: Generally, financing for non-residents covers between 70% and 80% of the value of the property, requiring an initial down payment of 20% to 30%.

• Effort rate: The effort rate, which represents the percentage of income allocated to paying off the loan, should not exceed 30%. Presenting additional guarantees can help negotiate better conditions.

• Financing terms: The maximum loan term generally does not exceed 30 years, regardless of the buyer’s age.

• Interest Rates: Interest rates can vary depending on the buyer’s profile and the financial institution chosen. It is advisable to carry out simulations at different banks to find the best option.

Purchase Steps

The process of buying a property in Portugal involves several stages:

• Choice of Property: Define the characteristics you want and select the property that best suits your needs.

• Promissory Contract of Purchase and Sale: This preliminary contract is signed by both parties and sets out the terms and conditions of the transaction, including the price, deadlines and any suspensive conditions. It is common for a down payment to be made at this point.

• Public deed: The purchase is formalized by signing the public deed of sale, which is done before a notary. At this stage, the taxes and fees associated with the transaction are paid.

Associated costs

When buying a property in Portugal, it is important to consider the following costs:

• Municipal Property Transfer Tax: This tax is calculated based on the value of the property and varies according to the location and purpose of the property. Rates can vary between 5% and 7.5%.

• Stamp Duty: Corresponds to 0.8% of the transaction value.

• Notary fees and registrations: The costs of the public deed and registry can vary between €1,000 and €2,000, depending on the notary and the complexity of the process.

Advantages

Buying a house in Portugal as a non-resident has several advantages:

Non-Mandatory Residence: It is not necessary to reside permanently in Portugal in order to own a property there.

Income potential: The possibility of renting out the property makes it possible to earn additional income, especially in tourist or urban areas with high demand.

Attractive Real Estate Market: Portugal offers a dynamic real estate market, with investment opportunities in various regions, from metropolitan areas to coastal areas.

Buying a house in Portugal without being a resident is a viable and potentially advantageous process. With the right preparation and the support of Imóveis Lusos’ specialized professionals, it is possible to carry out a safe and successful transaction, taking advantage of the opportunities offered by the Portuguese real estate market.